M&A activity poised for record year in 2026

Bill Curtin, the global head of M&A at Hogan Lovells, predicts that 2026 might see a surge in dealmaking, potentially breaking records. Curtin believes that we are currently in the midst of a multi-year M&A trend that shows no signs of slowing down.

According to Curtin, several factors are contributing to this robust M&A environment. One key driver is the abundance of capital in the market. Companies are awash with cash, and private equity firms are sitting on large pools of capital, ready to deploy. This influx of capital is fueling M&A activity as companies look to put their money to work through strategic acquisitions.

Another factor driving the flurry of dealmaking is the availability of cheap debt. Interest rates remain low, making it attractive for companies to borrow money to fund acquisitions. This easy access to financing is facilitating M&A transactions and allowing companies to pursue growth opportunities through strategic mergers and acquisitions.

Furthermore, technological advancements are playing a significant role in shaping the M&A landscape. Companies are increasingly turning to technology to drive innovation and stay competitive. As a result, we are seeing a wave of tech-driven M&A deals as companies look to acquire cutting-edge technology and talent to position themselves for future success.

Curtin also points to the rise of ESG (environmental, social, and governance) considerations as another driving force behind the current M&A boom. Companies are placing greater emphasis on sustainability, social responsibility, and good governance practices. As a result, we are seeing more ESG-driven M&A transactions as companies seek to align themselves with these values and demonstrate their commitment to sustainability and good corporate citizenship.

Overall, Curtin is optimistic about the outlook for M&A in 2026, anticipating a year that could potentially set new records for dealmaking. With strong drivers such as ample capital, cheap debt, technological innovation, and a focus on ESG considerations, the stage is set for a continued surge in M&A activity. Businesses that are able to capitalize on these trends and execute successful M&A strategies stand to benefit from the opportunities presented by the current environment.